The government also revised sharply downwards the November print to (-)0.8 percent from (-)0.1 percent earlier.

Even exports, which account for one-fifth of India's gross domestic product, fell for eight consecutive months up to November.

Meanwhile, ahead of the January inflation readings Reserve Bank Governor D Subbarao had said the price rise index which slowed to a three-year low of 7.18 per cent in December, is "still high."

In its own bid to revive the flagging economy, the Reserve Bank of India cut the key repo rate for the first time in nine months, by 25 basis points to 7.75 percent in January, but warned there was limited room for further easing.